The federal government has announced a major five-year tariff reform plan under the National Tariff Policy 2025-30. This important step aims to cut import duties significantly, make business easier, increase competition, and support economic growth in Pakistan.
According to official documents, the average tariff rate will gradually come down from the current 20.19 percent to 9.70 percent over the next five years. Customs duties will be capped at a maximum of 15 percent. Additional customs duties, currently up to 6 percent, will be phased out completely to zero. Regulatory duties will first be limited to 20 percent and then removed in stages.
These reforms are expected to cause a revenue shortfall of around Rs 143 billion. However, officials believe the long-term benefits, lower costs for raw materials, cheaper imports, and stronger local industries, will outweigh the short-term loss. The policy will help domestic manufacturers become more competitive and give consumers better prices and more choices.
The Ministry of Commerce says the plan will modernise Pakistan’s trade rules and bring them closer to international standards. It will encourage investment and support export growth. Experts suggest gradual implementation so local industries can adjust smoothly. Complementary measures like industrial support will also be important.
If implemented well, the tariff reforms can play a key role in Pakistan’s journey toward sustainable economic progress.